AI and the Death of the Career Ladder

"Bloomberg reported last month that OpenAI had hired more than 100 ex-investment bankers to train its AI on how to build financial models as it looks to replace the hours of grunt work performed by junior bankers across the industry."

"An aging population requires care, and automation struggles with this type of task. Consequently, the advice for the next generation is to pay attention to demographics so that you can be ahead of the big trends shaping the workplace."

"Just as buyers in Akerlof's market stopped buying used cars, employers are stopping the open hiring process. They retreat to offline networks and nepotism to find people they feel they can trust. The issue is that if everyone sounds perfect on paper, the only signal left is a personal introduction."

"The constantly changing nature of these tariffs makes the situation particularly difficult for businesses - and is likely reducing growth both at US-based firms and international firms."

"While initial jobless claims remain low, these leading indicators suggest the US labor market is weakening."

"In the past, a lower starting salary offset the cost of on-the-job training. Today, graduates are more expensive. When the cost of an inexperienced worker rivals that of a worker with a few years of experience, the rational employer chooses the proven candidate every time. Since trainees can’t generate immediate value to justify their new price tag, firms close the door to hiring them."

"Some of these less glamorous jobs offer what many office roles no longer guarantee: stability. They are hard to automate, and turnover in these roles is falling."

"Sales roles, which require travel and face-to-face relationship building, remain robust against automation. The willingness to get on a plane is becoming a competitive advantage."

"Firms are heavy with mid-career specialists and hire fewer trainees than ever before. This saves on the expense of training today - but risks hollowing out leadership pipelines."

"According to the FT, some recruiters are warning that failing to hire juniors today - puts a company's existence at risk within 15 years."

"Dan Priest - the chief AI officer at pwc told the Economist that the structure might eventually shift to an hourglass - where AI hollows out middle management – essentially the opposite of what we are seeing today. This would allow AI-native graduates to leapfrog into leadership."

"This means mastering AI tools, building networks, and choosing resilient sectors that are likely to continue growing due to demographic trends such as healthcare and advanced manufacturing."

"Just as buyers in Akerlof's market stopped buying used cars, employers are stopping the open hiring process. They retreat to offline networks and nepotism to find people they feel they can trust."

"Some of these less glamorous jobs offer what many office roles no longer guarantee: stability. They are hard to automate, and turnover in these roles is falling."

"Sales roles, which require travel and face-to-face relationship building, remain robust against automation. The willingness to get on a plane is becoming a competitive advantage."

"According to the FT, some recruiters are warning that failing to hire juniors today - puts a company's existence at risk within 15 years."

"Dan Priest - the chief AI officer at pwc told the Economist that the structure might eventually shift to an hourglass - where AI hollows out middle management – essentially the opposite of what we are seeing today. This would allow AI-native graduates to leapfrog into leadership."